The bug requires the player to be fully submerged for this bug to occur. If you create frost 1 block under the surface of the water, it vanishes normally. If you create frost 2 or more blocks under the surface of the water, it never vanishes.
EDIT: further testing reveals that this is a light level issue. Placing glowstone underwater near the frost blocks causes them to begin breaking. This would also include frost not breaking at night.
The bug requires the player to be fully submerged for this bug to occur. If you create frost 1 block under the surface of the water, it vanishes normally. If you create frost 2 or more blocks under the surface of the water, it never vanishes.
EDIT: further testing reveals that this is a light level issue. Placing glowstone underwater near the frost blocks causes them to begin breaking. This would also include frost not breaking at night.